Steps to Receiving a 25% Endow Iowa Tax Credit

Eligibility Requirements

Gifts can be made to an existing permanent endowed fund or an endowed fund that you establish. The gift must benefit one or more Iowa charitable causes. All Endowed Tax Iowa Credit gifts must be placed in a permanent Endowment Fund of a qualifying organization. Such funds are intended to exist in perpetuity, and the spend rate from the fund may not exceed 5% annually.

Qualifying gifts may also be made in any amount to existing KACF Endowed Funds. These qualifying Endowed Funds include: Agency Endowments, Donor Advised funds, Designated Funds and Field of Interest Funds.

Donors can contribute to their existing endowed fund or any endowed fund at the Community Foundation at any time throughout the year. Donors may also make contributions to these funds in multiple years and receive the Endow Iowa tax credits for every contribution they make in each year they make a contribution.

Tax Credits equal to 25 percent of the value of the gift are limited to $300,000 per individual for a gift of $1.2 million, or $600,000 per couple for a gift of $2.4 million if both are Iowa taxpayers. Any excess Endow Iowa tax credits not used in the authorized tax year by donors may be carried forward for up to five years.

Once The Keokuk Area Community Foundation receives an eligible Endow Iowa Gift, we will honor your gift by investing it carefully. We will mail you an Endow Iowa Tax Credit application for your generous gift. In the spring of 2017, all Endow Iowa Tax Credit applications will now be processed quickly and efficiently by the Iowa Economic Development Authority’s new online Endow Tax Credit Application Portal that The Keokuk Area Community Foundation now has exclusive access to. Over $6 million in Endow Iowa tax credits will be awarded in 2017.

Steps to Receiving an Endow Iowa Tax Credit

Make a gift to an existing KACF Endowed Fund in any amount or establish your own endowed fund that at The Keokuk Area Community Foundation.

KACF will send you an Endow Iowa Application Form. Please complete, sign and mail back to The Keokuk Area Community Foundation. The Keokuk Area Community Foundation will not accept emailed Endow Iowa Applications due to KACF’s Privacy Policy.

KACF will process the completed and signed application electronically through the Iowa Department of Economic Development’s Online Submission Portal.

The Iowa Department of Economic Development will review the donor’s Endow Iowa application created by Keokuk Area Community Foundation.

After review, The Iowa Department of Economic Development will send a letter to you confirming that tax credits have been assigned to you for your state income tax. The Keokuk Area Community Foundation will also be notified on the confirmation of the donor’s tax credit.